Dollar General, which sells most of its merchandise for $10 or less, said net income in the first quarter ended May 1 jumped to $83.0 million from $5.9 million a year earlier. Adjusted earnings before interest, income taxes, depreciation and amortization soared 59 percent to $291 million.

As the recession tightens household budgets, more shoppers have flocked to discount chains such as Dollar General, Wal-Mart Stores Inc , Family Dollar Stores Inc and Dollar Tree Inc .

Dollar General's quarterly sales rose 15.7 percent to $2.78 billion, while sales at stores open at least a year, or same-store sales, climbed 13.3 percent.

Dollar General added that through May 1, the company has opened 104 new stores and remodeled or relocated 100 more in the current fiscal year. Four stores so far have been closed.

The company said it plans capital expenditures of about $250 million to $275 million, as it opens about 450 more new stores and remodels or relocates 400 others.

The company, which is owned by private equity group Kohlberg Kravis Roberts & Co , operates more than 8,460 stores in 35 U.S. states.

(Reporting by Jessica Wohl and Ian Sherr in Chicago and Martinne Geller in New York; Editing by Lisa Von Ahn, Dave Zimmerman)